Why are states attempting to pass laws that would affect a states right to contract out certain functions overseas?
As states continue to attempt recovery from the recent recession, the loss of jobs is a key political issue. Offshore services are a convenient target for local lawmakers, since the offshore vendors have no constituent voice within the state. But job loss and creation is a more complicated than mandating in-state call centers. There are many reasons states have lost jobs over the last five years. They include: 1) the 2001 recession; 2) the collapse of the dot-com craze; and, 3) lower labor requirements due to improvements in technology and labor productivity. States have reacted differently to these factors. Some states, beset by job loss, have decided to make a stand on the call center issue. For example, one state recently budgeted $1 million over multiple years to operate a local call center staffed by 30 workers.3 Other states take a more cost-benefit approach to the issue. Kansas recently scratched proposed legislation that would have mandated that its food stamp call center be lo
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